Ford is shutting down operations in Japan and Indonesia

The corporate logo of Ford is seen at a Ford branch in Caracas
Thomson Reuters

BEIJING - Automaker Ford Motor Co said on Monday it will close all operations in Japan and Indonesia this year as it sees "no reasonable path to profitability" in the two countries.

Ford will exit all areas of business, including shuttering dealerships and stopping sales and imports of Ford and Lincoln vehicles, according to an email from Asia Pacific President Dave Schoch to all employees in the region.

Product development carried out in Japan will be shifted elsewhere.

"Unfortunately, this also means that our team members based in Japan and Indonesia will no longer work for Ford Japan or Ford Indonesia following the closures," Schoch wrote. A Ford spokeswoman earlier confirmed that an email regarding the decision was sent to employees on Monday.

The automaker employs 292 workers in Japan, while it has a staff of 35 in Indonesia and 44 dealerships there, according to Shanghai-based Ford spokeswoman Karen Hampton.

Ford follows in the footsteps of General Motors , which last year decided to stop making GM-branded cars in Indonesia - with the loss of 500 jobs - amid intense competition from Japanese rivals.

The story in these parts of Asia contrasts vividly with Ford and GM's operations and sales in China, where GM has been enjoying a surging market for the better part of a decade and Ford has recently begun to tap into the Chinese boom.

As China's growth slows, automakers are looking to refocus their Asian businesses. Japan in particular has never been a strong market for US domestic car makers, unlike their home market, where Japanese companies are firmly established and have over 40 years built up impressive markert share and loyalty among US consumers.

(Reported for Reuters by Jake Spring. Additional reporting by Naomi Tajitsu in TOKYO; Editing by Clarence Fernandez and Kenneth Maxwell)